The only thing it seems Wall Street is talking about right now is the Coinbase IPO as the crypto exchange went public Wednesday afternoon around 1:30 p.m. EDT at $381 a share.
Coinbase Inc. (Nasdaq: COIN) is an American cryptocurrency exchange online platform that allows people to deal with digital currency, mostly Bitcoin and Ethereum.
For a company that deals in crypto — a modern way for people to fight against the control of institutional monetary systems — it’s unusual to see it as a publicly traded company.
That’s why Coinbase went against a traditional IPO, and instead went for a direct listing. A direct listing means there won’t be any new shares issued, and only the existing/outstanding shares will be sold.
In this scenario, Coinbase will sell its shares directly to the public, bypassing an underwriter.
Whether you like it or not, the company is making a massive amount of money out of the blue — almost as much as the New York Stock Exchange in a far, far shorter amount of time.
And as Joy of the Trade’s Jeff Zananiri and I explain in today’s video, with the help of the recent fever of non-fungible tokens (NFTs), the Coinnbase IPO could be worth traders’ investment.
The new love for NFTs could help drive investors’ interest in the Coinbase IPO, since NFTs are creating more ways for cryptocurrency to be used.
Which, of course, is a good thing. In fact, Jeff thinks this could actually be a bullish thing for the entire concept of blockchain.
According to Coinbase’s website, a blockchain is a list of transactions that anyone can see and verify. So the Bitcoin blockchain would have the record of every time someone sent or received bitcoin.
And in the next five years or so, we’re going to start to see the massive amount of ways we can start using it in everyday digital life.
For example — and this is happening right now because of crypto — when you copy and paste a picture online, you’ll be instantly charged for that picture.
The digital picture will have its own encryption and number associated that’s unique to it. So after you paste or move the picture somewhere else online, the owner will be notified via digital means of everything.
That means the artist will not only get paid for their picture being used, they’ll also have complete transparency of where and who the image is going to, and what it’s being used for.
One day, almost anything digital you can think of will be encrypted like this: movies, music, magazines, recordings, digital artworks, books and even virtual real estate. That also means the days of downloading things for free are numbered…
BUT this will reinvent privacy, security and digital encryptions unlike anything we’ve ever seen before.
Think of blockchain as if the New York Stock Exchange existed in everything. It’s a central database and ledger for transactions. That means there will be a record for all of your digital transactions
That’s powerful and something that Coinbase has a major head start in.
In a crypto future, everything will be tradable, and the Coinbase IPO might be one-step closer to that world.
Check out our video below to learn more about cryptocurrency with the Coinbase IPO. We’re also discussing the reality of the economy after COVID-19 and Jeff’s current Money Link trades to help give you an idea of which stocks to cover right now.
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